Overwhelmed America: Why Don’t We Use Our Earned Leave? August 2014
As prepared by: GfK Public Affairs & Corporate Communications July 2014
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Table of Contents 3 - Research Objectives and Research Methodology 4 - Research Objectives 5 - Research Methodology 6 - Executive Summary 7 - Standout Data 9 - Key Thematics 12 - Detailed Findings 13 - Context and Landscape 27 - The Logistics and Reality of Taking Paid Time Off 34 - Benefits of Taking Paid Time Off 38 - Messages that Motivate Taking and Approving Paid Time Off 41 - Senior Business Leader Findings 2
Research Objectives and Research Methodology
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Research Objectives GfK set out to answer the following questions: Are employees fully aware of their organization’s leave policy, the total days of leave they have available and their days used at any given time? How does the understanding and utilization of earned leave differ among the C-suite, middle managers and front-line workers? How many of barriers exist in employees’ own mindsets? How do these affect decisions to use their earned leave? Are there any remaining vestiges of the Great Recession impacting employee leave – job security, high unemployment, workloads? When employees take their time, how do they use it? (e.g., sick days, vacation, family activities/travel, home improvement projects) What are the outcomes for workers? When and how often have they been promoted? What type of bonus, if any, have they received? Moreover, how do workers feel about their work-life balance, personal relationships, overall mood and outlook, health and wellness? Do top leadership and middle managers send consistent messages to their employees about using earned leave? Do these messages encourage workers to take time off? Do they recognize or perceive the signals they are sending? What actions could employers take to motivate employees to take time off? Do managers change the way they feel about their managers and direct reports subordinates when they take their earned leave? Does it change their own personal mix of responsibilities while they are gone?
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Research Methodology
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Part One: Focus Groups
GfK conducted a series of two focus groups in Baltimore, Maryland. One group consisted of full time workers who are compensated with earned leave, and one consisted of group among managers, directors, and vice presidents who have direct reports who must get their permission to use their earned leave.
Part Two: Survey
GfK then conducted a survey of 1,303 American workers, age 18+, nationwide among those working 35 hours or more a week who receive paid time off (PTO) using GfK’s KnowledgePanel®, including 235 senior business leaders. The survey was conducted June 20-30, 2014. The data were weighted and scaled to reflect Current Population Survey figures. The margin of error for workers overall is +/-2.71%, and +/-6.39% for the senior business leader sample. These data were weighted and scaled to ensure that sample’s composition reflects that of the actual population of American adults working 35 hours a week or more.
Executive Summary
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Standout Data – What You Need to Know 1. Importance of Taking PTO and PTO Policy Context The importance of taking PTO is unquestioned among American workers, as there is near universal recognition of its significance.
Can roll over, bank or be paid out 69%
A quarter of workers say their companies have a “Use It or Lose It” PTO policy.
96% 4%
Lose it 26% Don't know 4%
2. However, there are a host of barriers preventing workers from using their PTO. Over three in ten say that they are not the ones with ultimate control of their PTO.
Four in ten workers are leaving their days of PTO unused. Two-thirds of workers are receiving negative, mixed, or no messages about taking PTO from their company.
7
48%
Neither encourages nor discourages taking PTO
13%
Sends mixed messages Discourages taking PTO Encourages taking PTO
67%
6% 32%
69% I control it
It’s not easy for nearly four in ten workers to take the PTO they have.
31% Company controls it
62%
Easy Neither easy nor difficult Difficult
20% 17%
37%
Standout Data – What You Need to Know 3. Additional Challenges Among Senior Business Leaders 33%
One-third of senior business leaders never or only once a year communicate the merits of taking PTO to direct reports.
26% 14%
24% 14%
19%
3% Once a week Once or twice a month
Once every Two to three Once a year quarter times a year
Never
Nearly three in ten senior business leaders refrain from characterizing approving PTO requests as easy.
Easy
72%
Neither easy nor Difficult
20%
28%
8%
4. Strategies to Help Overcome the Obstacles 1. Start the conversation. Eight in ten workers say that if their boss fully supported them and encouraged them to take their time they would be very or somewhat likely to take more of their PTO.
2. “Use it or Lose it” policies are motivating. Roughly five out of six workers who work at a company with a “Use It or Lose It” policy use ALL of the leave available to them. Only 48% of workers who can roll over, bank or be paid out for their unused time use all of their leave.
“Use it or Lose it” Policy 84%
48%
48%
15% Use all Don’t use all
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Can Roll Over, Bank or Be Paid Out Policy
Use all Don’t use all
Key Thematics There is a striking disconnect between the importance that workers place on taking PTO, and the ease with which they feel that they can take it. The central challenge is closing this gap. • 96% of workers say that taking PTO is important (51% “extremely important”). • 37% refuse to characterize the process of taking PTO as “easy”. • Four in ten workers do not take all of their PTO each year. Corporate culture is a killer. Far too many employers do not encourage taking PTO (in policy and/or communications), and senior business leaders send mixed signals about the importance and benefit of taking PTO. • Only 32% of workers say that their employer encourages taking PTO. • 33% of senior business leaders either say nothing (19%) or only discuss the merits of taking PTO once a year (14%). • 28% of senior business leaders either say it is difficult (8%) or neither easy/difficult to approve PTO requests (20%). • Over one-third of senior business leaders either agree or neither agree/disagree that taking all of your PTO signals that workers are less dedicated (39%), less successful (35%), and less productive (38%).
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• 54% workers can roll over PTO, 19% can be paid out, and 10% can bank PTO. Only 26% have “Use It or Lose It” policies. Among this population, 84% use all of their PTO compared to 48% who use all among those who can roll it over, bank it, or be paid out.
Key Thematics (continued) The benefits of taking PTO are top-of-mind. The larger challenge is breaking down barriers to taking PTO. • Top benefits identified by workers of taking PTO include relaxing/recharging (90% agree), engaging in fun activities (88%), and that PTO makes them a happier person (85%). The top motivators/messages for taking PTO are that it helps workers de-stress and avoid burning out (88% likely to take more PTO), gives workers a chance to reset and take a break from colleagues (84%), and that their boss fully supports their taking PTO (80%). • The top barriers to taking PTO are a “mountain of work” (40% difficult to take PTO), nobody else can do the work (35%), cannot afford it (33%), and taking time gets harder to do the higher up you go (33%). This is felt more acutely among senior business leaders.
Workers who are happy with their jobs report an environment where bosses and co-workers encourage taking PTO; workers plan and coordinate PTO and people talk about their PTO experience when returning to work. • People coordinate with coworkers to have coworkers cover their responsibilities when taking paid time off: 71% for workers who are happy with their jobs versus 64% for those who are unhappy with their jobs. • After coming back to work, people talk about their experience and its benefits: 73% for happy workers versus 66% for unhappy workers . • Boss and co-workers encourage taking PTO (61% and 65% for happy workers, respectively, versus 32% and 52% for unhappy workers, respectively).
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Key Thematics (continued) Workers who characterize taking PTO as “easy” rate higher on mood and outlook, job satisfaction, personal finances, professional success and personal relationships. • Among workers who say that it is easy to take PTO: 87% are happy with their job (versus 74% for those who say it is difficult to take PTO); 90% are happy with their overall mood and outlook (versus 84%); 77% are happy with their personal financial situation (versus 67%); 85% are happy with their professional success (versus 80%) and 79% are happy with their marriage/ relationship with a significant other (versus 75%)
Senior business leaders need support, not condemnation. As workers, they find it harder to take PTO and stay plugged in during it which often leads to mixed messages for workers. • Only 49% of senior business leaders say it is “easy” to take PTO (65% for employees). • Senior business leaders think taking time off is harder the higher up you go (56% to 28% for employees), that nobody else can do the work (54% to 31%), and that they would come back to a mountain of work (54% to 37%). • 46% of senior business leaders responded to work emails while taking PTO (14% for employees); 22% spent time working (8% for employees). Comparing these two numbers, some senior business leaders do not consider responding to email as working.
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Detailed Findings
12
Context and Landscape
13
There is almost universal recognition of the importance of taking PTO, and this sentiment is rooted in intensity, with a majority of workers characterizing PTO’s significance as “extremely important”.
Importance of Taking PTO
EXTREMELY IMPORTANT
96%
96%
95%
51%
52%
46%
28%
27%
32%
16%
16%
16%
3% 1%
3% 1%
4% 1%
4%
4%
5%
TOTAL
EMPLOYEES
SENIOR BUSINESS LEADERS
VERY IMPORTANT SOMEWHAT IMPORTANT NOT VERY IMPORTANT NOT AT ALL IMPORTANT
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Q13. How important is using your paid time off to you personally? (Darker colors used to indicate intensity).
The perceived importance of taking time off does not translate into workers maximizing the PTO available to them. Roughly one-quarter of workers took 9 days or fewer last year. 2013 PTO Use 25 or more days
16% 16% 15%
20-24 days
22% 23% 19%
10-19 days
38% 37% 44% 19% 19% 20%
1-9 days
4% 4%
None 2%
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Q10. In 2013, how many days of paid time off did you take, including vacation time and personal days?
TOTAL EMPLOYEES SENIOR BUSINESS LEADERS
Furthermore, four in ten plan to leave some of their PTO unused this year. While few do not plan to use any of their PTO, one-tenth plans to use less than half of the PTO available to them. How Much of Your PTO Do You Plan to Take in 2014?
Those Who Take All Their PTO
All (100%) 55% Most (75%-99%)
14% 13% 17%
At least half (50%-74%) 11% Some (25%-49%)
A little (1%-24%)
None (0%)
16
59% 60%
6% 5%
3% 3% 5% 2% 3% 1%
15% 16%
9% TOTAL EMPLOYEES SENIOR BUSINESS LEADERS
• Female senior business leaders, workers over age 55, older women and noncollege educated women are all more likely to take all of their PTO. • “Use it or Lose it” policies also compel workers to take all of their PTO, as 84% who lose their unused PTO at the end of the year plan to take all of it. • Those who use all of their PTO report a higher degree of happiness in their personal relationships with family/and or friends.
Q12. Earlier you mentioned that you have [INSERT ANSWER FROM Q4] of paid time off. In 2014, how many days of paid time off do you plan to take, including vacation time and personal days? [ENTER NUMERIC.]
Focus groups suggested that convincing workers to take all of their PTO was an impractical ask and that messaging efforts were better received when the goal was aimed at convincing workers to take more of their PTO instead of all of it. Why Asking for All Doesn’t Work • Employees felt that the prudent approach is to have some earned leave reserved for emergency situations, and that exhausting all of your earned leave is both irresponsible and unsettling. • Managers question the pragmatism and optics of spending what is tantamount to a month or more for many of them away from work each year.
I don't agree with any of
these. Like, “Taking all your time off” — like exhausting all your leave — I don't agree with that. –Employee Because in case of an emergency — life is unpredictable. – Employee 17
Some stuff you just want to hold onto. – Employee I don’t think the word “all” survived at all. –Manager
You can save some. That’s too much. Like I said, if you take too much time off, all your work is going to pile up, so if you did take 44 days off, that’s the whole month that you’re gone. You’ll come back and they’re going to fire you. You’re going to be in the unemployment line. –Manager
Only 26% of workers are employed by companies with “Use it or Lose it” policies, while nearly three-quarters can roll over, be paid out, or bank unused leave. Further, few workers are unaware of the options available to them. What Happens to Unused PTO – Among Total
54%
You can roll over some or all of it into the next year
19%
You can be paid out for it
You can bank it (for things like maternity/paternity leave, retirement)
10%
26%
You lose all of it at the end of the year
Don’t know
18
11% report having lost PTO, 9% don’t know
4%
Q5. If you do not use all of your paid time off by the end of the year, which of the following does your company allow you to do? Please select all that apply. Q11. How many days of paid time off did you permanently lose last year? These are days that were not rolled over, banked, or paid out.
Half of those with PTO days that can be banked or rolled over is allowed to carry 11 or more days into the next calendar year.
Number of PTO Days that Can Be Rolled Over or Banked Among Those Who Can Roll Over or Bank PTO Days
30%
1-5
20%
6-10
19%
11-15
16-20
21 or more
19
10%
21%
Q6. How many of your paid time off days are you permitted to roll over or bank into 2015?
Nearly half of those with the ability to roll over days say that these days do not expire.
Expiration Date of Rolled-Over PTO Days Among Those Who Can Roll Over PTO Days
47%
21%
5%
5%
19%
2%
2%
Within 3 Within 6 Within 1 year Within 2 years After more months of the months of the than two years following year following year
20
They do not expire
Q9. When do days off that you have rolled over expire?
Don't know
Roughly one-fifth of workers are able to roll over and bank PTO days without facing any limits. Among those who are subject to caps, a majority do not face a cap unless they attempt to roll over or bank in excess of 11 days. One in five is unsure as to the limits of the policy in place. Is There a Cap on the Number of PTO Days that Can Be Rolled Over/Banked?
Cap on PTO Days that Can Be Rolled Over/Banked Among Those Who Say Yes
Among Those Who Can Roll Over/Bank PTO Days
24%
1-5
62%
17%
6-10
15%
11-20
Yes
19%
18%
No
Don't know
21-30
31-50
51 or more
21
Q7. Is there a cap on the total number of days that you can roll over or bank? Q8. What is that cap on the number of days? [ENTER NUMERIC.]
13% 12% 16%
The widespread acknowledgment that the importance of taking PTO is paramount is not matched by workers’ perceptions of ease when it comes to taking PTO. Rather, only six in ten find it easy to use their PTO and only one-third believes this strongly. Ease of Taking PTO EMPLOYEES
TOTAL
SENIOR BUSINESS LEADERS
65%
62%
49%
31%
30%
25%
17%
33% 20%
14%
34% 20%
14% 3%
Easy
22
Neither
Difficult
Easy
32%
Neither
12% 2% Difficult
27% 24%
Easy
19% Neither
5% Difficult
Q15. Generally speaking, how easy or difficult is it for you to use your paid time off? (Darker colors used to indicate intensity.)
Utilizing PTO poses a greater challenge to senior business leaders: a majority of senior business leaders (51%) either characterize their experience using PTO as difficult or neither easy nor difficult.
Over three in ten believe their employer retains ultimate control over their PTO. Workers who believe the company controls their PTO are more likely to be unhappy with the company for which they work. Who Controls Your PTO? EMPLOYEES
TOTAL
The Approach of the Happy and Less Stressed SENIOR BUSINESS LEADERS
78% 69%
67% 39%
35%
34%
34%
31%
33%
20%
21% 33%
10%
I do
23
The company I work for does
22% 39% 17%
12%
I do
The company I work for does
I do
5%
The company I work for does
• Seven-in-ten who say they are happy with their job, happy with the company at which they work and who are not stressed by their work life say they have ultimate control over their PTO. • Furthermore, the differences between these individuals and their unhappy and stressed out counterparts are statistically significant.
Q18. Who ultimately has control over your ability to use your paid time off? Please indicate if you feel this way strongly or only somewhat. (Darker colors used to indicate intensity.)
Though the importance of taking PTO is nearly universally acknowledged, company culture’s communication failure is reflected in the two-thirds of workers who do not believe that their company encourages taking PTO. Corporate Culture’s Attitude Towards PTO
13%
13%
32% 13%
TOTAL
31% 6%
48%
EMPLOYEES
49%
ENCOURAGES TAKING PTO 24
DISCOURAGES TAKING PTO
41%
SENIOR BUSINESS LEADERS
41% 3%
7%
NEITHER ENCOURAGES NOR DISCOURAGES TAKING PTO
SENDS MIXED MESSAGES ABOUT TAKING PTO
Q17. Thinking about the corporate culture at the company you work, would you say it…?
Senior business leaders are more likely to recognize company culture’s efforts to promote PTO. However, this number still ties with the perceived indifference or silence coming from the company about taking PTO.
In fact, nearly one-fifth of senior business leaders admits to never talking about the benefits of taking time off with employees. Frequency of Communication Regarding Merits of Taking Earned Leave – Among Senior Business Leaders
“
33% 26% 24% 19% 14%
14%
I don’t necessarily talk to my employees about taking their time, but I don’t hinder them when they come to me and say that they need to take time. – Manager I don’t want to tell somebody to be happier… HR would be calling you. – Manager
3%
Once a week Once or twice a Once every month quarter
25
Two to three times a year
Once a year
Never
Q31. How often do you talk about the merits of taking paid time off with the people who report to you?
Though over seven in ten have taken PTO for a planned event in the last six months, 14% have not used PTO for a planned event in over a year. Most Recent Planned PTO Less than 1 month ago
33% 34% 30%
1 - 6 months ago
39% 39% 40% 14% 13%
7 - 11 months ago
1 year - 5 years ago
6 or more years ago
I have never used my PTO for something planned
26
Behavior Among Those With Differing Perspectives of PTO
18%
9% 9% 9% 1% 1% 0% 4% 5% 2%
TOTAL EMPLOYEES SENIOR BUSINESS LEADERS
• Those who recognize the personal importance of taking PTO are nearly three times more likely to have used PTO for a planned event in the past month compared to those who do not find it important (34% versus 12%). • Those who find it challenging to use their PTO are less likely to have taken time off in the last month. There is a doubledigit gap in PTO use in the past month among those who find it easy and difficult to take PTO (35% versus 25%).
Q19. When was the last time you used your paid time off for a planned event, such as a vacation or family/personal event?
Many of the top uses of PTO are for planned events. Vacation accounts for the majority of PTO use, with nearly two-thirds using PTO in order to take a vacation. What Workers Have Used PTO for During the Past Year – Among Total Vacation To create a long weekend for yourself To use the days off that you are given It was the day before or after a major holiday, such as the day before You were sick You had family or friends in town visiting A child had a special activity, such as a play, an awards ceremony, or a big game For your birthday To work on a home-improvement project, such as building a deck or fixing Something at your home broke or wasn't working properly, and you had to wait To attend a funeral following a death in the family The weather made it difficult to get into the office A child was sick To attend a wedding Religious holiday You or your spouse/significant other had a baby To get married To supplement maternity/paternity leave Other 27
64% 46% 31% 29% 28% 21% 14% 14% 14% 12% 11% 11% 9% 9% 5% 3% 2% 2% 9%
Q23. In the past year, for which of the following did you use your paid time off? Please check all that apply.
The Logistics and Reality of Taking Paid Time Off
28
Four in ten say their spouse or significant other is the most supportive of using PTO. Most Supportive of You Using PTO You, yourself 27%
Your boss/the company for which you work
42% 39%
Your child/children
Your coworkers
29
Among Whom a Spouse/ Significant Other is Most Supportive
8% 8% 9%
Your spouse/significant other
Your friends
38% 40%
4% 4% 4% 3% 3% 2% 3% 3% 4%
Your family/parents/relatives (vol.)
1% 1% 1%
Other (specify)
0% 1% 0%
TOTAL EMPLOYEES
52%
• Senior business leaders identified spouses as the most supportive to them of using PTO. • A spouse or significant acting as the chief supporter of using PTO requests is most notable among many groups of men: married men, younger men, collegeeducated men, and men who are senior business leaders.
SENIOR BUSINESS LEADERS
Q16. When you are thinking about using your paid time off, who is MOST supportive of you using it?
Seven in ten employees consider their family first when planning PTO. This trend holds across all demographic subgroups – majorities all check with what works best for those in their personal lives when planning PTO. Planning Paid Time Off
30%
38% TOTAL
SENIOR BUSINESS LEADERS
28% 69%
61%
EMPLOYEES
71%
MY FAMILY/FRIENDS/ OTHERS IN MY PERSONAL LIFE 30
MY BOSS/COWORKERS/ OTHERS IN MY PROFESSIONAL LIFE
Q24. Complete the following statement: “When planning time off, I generally check what works BEST for_________.”
• Taking PTO is not easy for everyone. Those who find taking PTO difficult are more likely to check with work first (46%), while those who find taking PTO easy defer more to family during the planning process (72%). • 73% of those with a happy marriage or happy relationship with their significant other check with family first when planning time off.
Even with a supportive work environment, workers confront challenges to taking PTO. Challenges to Taking PTO – Among Total 12%
I would come back to a mountain of work No one else at my company can do the work while I’m away
9%
35%
11%
I cannot afford a vacation Taking time off is harder to do the higher up you get in a company
40% 33%
7%
33%
I want to show complete dedication to the company and my job 4%
28%
I don’t want others to think that I am replaceable 4% I can bank or roll over my unused paid time off I get paid for my unused paid time off
22%
9%
22%
8%
21%
I would be expected to respond to work matters and e-mails anyways… 5%
20%
The company’s culture does not promote taking time off 5%
20%
I feel guilty using my paid time off 3%
20%
I don’t want to lose consideration for a promotion or pay raise 4% I would prefer to work rather than take time off 4%
17%
I am afraid of what my boss would think 3%
17%
I am afraid I would lose my job 4% Taking time off is something that comes with seniority 3%
Makes it very difficult to take your PTO 31
19%
16% 15%
Makes it very/somewhat difficult to take your PTO
Q27. Here is a list of reasons people have said make it difficult for them to use their paid time off. For each, please indicate if it makes it very difficult, somewhat difficult, not too difficult, or not at all difficult for you personally to use your paid time off.
Nearly three-quarters of employees are able to disconnect from work while taking time off. However, senior business leaders struggle to disengage and are twice as likely to remain plugged in. Interaction with Work During PTO Work called
8%
Work e-mailed
7%
I responded to work e-mails
I lied to someone I was with, such as a spouse/significant other, in order to do work without that person knowing
16%
8% 3% 1% 5% 4%
37%
11% 29% 14%
I spent time working
I brought work with me
29% 12%
I responded to work calls
Someone with whom I was with during the time off, such as a spouse/significant other, nagged me because I was doing work
12%
TOTAL
20% 46%
11% 22%
SENIOR BUSINESS LEADERS
12%
13%
0% 0% 2%
None of the above
68% 37%
32
EMPLOYEES
74%
Q22. Still thinking about your most recent planned paid time off experience, which of the following, if any, happened during your time off? Please select all that apply.
When planning PTO, coworkers check a master calendar, remind others of their absence and coordinate to ensure project coverage. Yes, This Generally Happens During PTO After coming back to work, people talk about their experience and its benefits
71% 70% 75%
People coordinate with coworkers to have coworkers cover their responsibilities when taking PTO
70% 68%
Coworkers encourage each other to take their PTO Coworkers check a master calendar or shared calendar before planning PTO
62% 60%
People send a reminder that they will be gone in advance of leaving for their PTO
56% 54%
People finish all of their projects and tasks before leaving for their PTO
51% 50%
Work calls/e-mails during people's PTO
People check in during their PTO
33
70%
60% 57%
My boss encourages employees to take their PTO
People complete work during their PTO
82%
63% 62% 64%
34% 31% 25% 22% 24% 22%
72%
66%
56%
TOTAL 52%
EMPLOYEES 35%
34%
Q25. Please indicate if this is something that generally happens at the company you work when employees plan and use their paid time off.
SENIOR BUSINESS LEADERS
The planning and encouragement regarding PTO at the offices of happy employees resembles the behaviors focus group participants identified with “model employees.” Cultivating a Happy Workforce
• There are dramatic differences in the corporate culture governing PTO separating those who are happy with their jobs and companies and those who are not. The 3 areas where these differences emerge are: • Encouraging others to take PTO, • Planning PTO, and • Talking about PTO after using PTO. • Happy workers are significantly more likely than unhappy workers to say that: • Their boss and coworkers encourage people to take their PTO, • People finish all of their projects and tasks before leaving, • People coordinate with coworkers to have coworkers cover their responsibilities, • People send a reminder that they will be gone in advance of leaving, and • People talk about their experience and its benefits upon their return to work.
34
I think the model employee sets everybody else up to be successful while they’re gone. So they do that work before they leave so that all those loose ends are wrapped up so that they can get — and it’s up, it’s obviously selfish too, so that they can get fewer phone calls and fewer emails when they get back. So obviously being really thoughtful well in advance and starting to wrap things up and delegate different things to different people, make sure they’re comfortable with what they’ve been tasked with. – Manager They’re more conscientious about taking time off… Like, they would schedule their time or they would try…they’re more conscientious of their coworkers. Somebody has to be there. – Employee
Q25. Please indicate if this is something that generally happens at the company you work when employees plan and use their paid time off.
Benefits of Taking Paid Time Off
35
Workers’ positive associations with taking PTO produce high ratings of recent PTO experiences.
60%
Would rate their most recent PTO experience a 90 or higher on a scale out of 100.
30%
Give their most recent planned PTO experience a perfect, 100 out of 100 rating.
36
Q20. What ONE word would you use to describe your most recent planned paid time off experience? [OPEN END.] Q21. On a scale from 0-100, where 0 means it was an absolutely horrible experience, and 100 means it was absolutely wonderful, how would you rate your most recent planned paid time off experience?
Aligning with the attributes defining workers’ latest PTO experience, the benefits of PTO that earn the greatest breadth and depth of agreement are those that facilitate people’s happiness, health, personal relationships, and ability to relax and recharge. Top-Tier Benefits of Taking PTO – Among Total 56%
Helps me relax and recharge
90%
Makes me a happier person
52%
85%
Gives me the opportunity to engage in activities that I enjoy
50%
88%
Strengthens bonds with my family and/or friends
46%
Reduces my stress level
45%
84%
Allows me to disconnect from work
44%
82%
Improves my overall health
38% Strongly agree
37
79%
Differences Between Senior Business Leaders and Employees • There are few differences between senior business leaders and employees on the advantages of PTO – both groups identify and agree with these advantages.. • Senior business leaders are more likely to indicate strengthening bonds with their families and/or friends is a benefit they associate with taking PTO compared to employees (86% versus 77%).
79% Strongly/somewhat agree
Q26. Based on your experiences taking your paid time off, please indicate if you agree or disagree with each of the following. Taking my paid time off…
Benefits of PTO struggling to gain the traction exemplified by those in the top tier tend to focus on PTO as a catalyst for improved work performance. Second-Tier Benefits of Taking PTO – Among Total Improves my concentration and makes me more productive at work
Makes me more creative, which helps me generate new ideas and approaches
65%
28%
Makes me more satisfied at work
61%
25% 46%
18%
Makes me more educated, cultured, and 14% interesting
39%
Saves me money by not having to pay 12% commuting or other work-related costs
35% 24%
Allows me to learn a new skill 7% Allows me to dedicate time to volunteering or 7% doing charitable work Helps me advance my career faster 4%
38
Differences Between Senior Business Leaders and Employees
21% 13%
Strongly agree Strongly/somewhat agree
Senior business leaders are also more likely to see the positive impact on work that accompanies taking PTO. Specifically, the are more likely to agree that taking their PTO, • Improves their concentration and makes them more productive at work (73% versus 64%); • Makes them more satisfied at work (71% versus 59%); • Makes them more creative, which helps them generate new ideas and approaches (56% versus 43%); • Makes them more educated, cultured, and interesting (49% versus 37%); • Allows them to dedicate time to volunteering or doing charitable work (29% versus 20%).
Q26. Based on your experiences taking your paid time off, please indicate if you agree or disagree with each of the following. Taking my paid time off…
Messages that Motivate Taking and Approving Paid Time Off
39
Many effective messages leverage top-of-mind associations and broadly-held benefits identified with taking time off. Messages That Encourage Taking PTO – Among Total Taking time off gives me a much-needed opportunity to de-stress and avoid burning out.
56%
Taking time off gives me a chance to reset and take a break from my colleagues, which improves my morale when I return.
47%
My boss fully supports me when I need to take my time off and encourages me to do so.
43%
By taking time off I recharge, renew and ultimately improve my performance at work – maybe even earn a raise or promotion.
43%
My co-workers fully support me when I take time off and will step up to cover my workload, because they know I’ll do the same when they take time off. My company has made it an organization-wide policy to encourage all workers to take their time off. My boss supports me in taking time off by managing my workload while I’m away.
88% 84% 80% 77%
40%
77%
36%
69%
34%
70%
One of the categories I’m evaluated on in my performance review is paid time off. In order to do well, I have to use my paid time off.
28%
50%
The talent leaders and HR department say that employees who take more of their paid time off receive promotions and raises more quickly.
27%
49%
40
Very likely Very/somewhat likely
Q28. Below is a list of statements some people have made. Assuming that each was true, how likely would you be to take more of your paid time off because of this statement?
Messages targeted to senior business leaders resonate as reasons to approve PTO requests, but even the most compelling statements are currently only being communicated by two-thirds of senior business leaders. % of Senior Business Leaders Who Have Said This to a Direct Report
Convincing Reasons to Approve PTO Requests – Among senior business leaders When employees use their time off, they return recharged and renewed, ready to work more efficiently and productively.
50%
91%
66%
By using their time off, my employees can destress, and improve their health and well-being — ultimately cutting down on sick days and burnout.
50%
90%
68%
Encouraging my employees to use their time off can dramatically cut down on turnover and improve morale.
49%
90%
48%
90%
64%
When employees use their time off, they return to work with improved focus and creativity. Encouraging employees to use their time off makes them more willing to put in long hours and over time when I really need them.
41%
Very convincing
41
81%
37%
43%
Very/somewhat convincing
Q29. Here is a list of some of the advantages of having employees use their paid time off. After reading each, how convincing is it to you as a manager as a reason to approve a paid time off request? (Darker colors used to indicate intensity.) Q30. Have you ever communicated any of the following statements to someone who reports to you?
Senior Business Leader Views on PTO
42
Over nine in ten senior business leaders recognize the importance of their direct reports using their PTO. Importance of Direct Reports Taking PTO 95%
41% EXTREMELY IMPORTANT VERY IMPORTANT SOMEWHAT IMPORTANT NOT VERY IMPORTANT NOT AT ALL IMPORTANT
40%
14%
“
I want my people there when they’re at their best. I think in order to be at their best, they need to take time to de-stress…. – Manager
And I put in that it promotes…the healthy lifestyle, promotes a stress-free person mentally, physically. – Manager
2% 3%
4% 43
Q14. Thinking about the people who report to you, how important is it to you that they use their paid time off? (Darker colors used to indicate intensity.)
Yet, over one-quarter refrains from describing approving PTO requests as easy, with difficulties stemming from the additional burden placed on other employees, including themselves.
Ease of Approving PTO Requests
Biggest Challenges to Approving PTO
Among Those Who Do Not Find it Easy (N=60*) It places an extra burden on other employees
72%
32%
The quality of work products suffer
35%
14% 9%
It places an extra burden on me It jeopardizes the company's bottom line
8%
It does not align with the company's culture
36% 20% Easy
Neither Easy Nor Difficult
8%
It interferes with meeting deadlines (vol.)
7% 1%
Other
1% 17%
Difficult None/nothing (vol.) Refused
44
7%
Q33. How easy or difficult is it for you to approve paid time off requests? (Darker colors used to indicate intensity.) Q34. For you, which of the following is the biggest challenge to approving paid time off requests? (*Denotes small n-size.)
6% 7%
Furthermore, employees who take all of their earned leave face disapproval or uncertainty regarding their dedication, productivity, and advancement prospects from over one-third of senior business leaders. Senior Business Leaders’ Impressions of Employees Who Take All Their Leave They are less dedicated to their jobs
They are less likely to be promoted
64%
61%
10%
35% 24%
Agree
45
42%
10%
25%
Neither Agree Nor Disagree
Disagree
Agree
23%
15% 14%
10% 1%
5%
61%
22%
26%
15%
They are generally less productive
38% 24%
1% Neither Agree Nor Disagree
Disagree
Agree
Neither Agree Nor Disagree
Q32. For your employees who take all of their paid time off, how would you describe them? (Darker colors used to indicate intensity.)
Disagree
Travel Effect is the U.S. Travel Association’s research-driven initiative to prove the personal, business, social and economic benefits that taking earned time off can deliver. For more information about survey findings, visit TravelEffect.com.
The U.S. Travel Association is the national, non-profit organization representing all components of the travel industry that generates $2.1 trillion in economic output and supports 14.9 million jobs. U.S. Travel's mission is to increase travel to and within the United States. For more information, please visit USTravel.org.
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